Market mechanics
How do dual-class share structures impact shareholder voting rights and liquidity?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Dual-class share structures give certain shareholders (often founders) higher voting power per share than public investors, concentrating control while potentially reducing liquidity and influence for ordinary shareholders.
How it works
These structures can insulate management from takeover pressure and shareholder activism, and index providers have in some cases limited or excluded dual-class companies from major benchmarks over governance concerns.
An example
A founder holding Class B shares with 10 votes each can retain majority control while owning a minority of total economic shares outstanding.
Risk & limitations
Limited voting rights mean public shareholders have reduced ability to influence corporate decisions even if they disagree with management.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.